One of the big concerns of consumers who are considering bankruptcy is that they will lose all of their property. In fact, the “I can’t file for bankruptcy because I will lose everything I own” myth is one of the biggest misconceptions out there about the bankruptcy process. Rather than automatically losing all of your property, the bankruptcy court compares your assets against the applicable exemptions for your state to determine whether there is anything to distribute to creditors. The majority of people who file for personal bankruptcy are able to utilize exemption laws to retain all of their property through the process. Exemption laws vary greatly by state, so it’s usually a good idea to meet with a local bankruptcy attorney to discuss how your property will be affected.
Are You Judgment Proof?
We all know why people are considering filing for bankruptcy. We have seen an unprecedented “black swan” type event in the coronavirus. Unemployment numbers are way up and many Americans face an uncertain financial future. Under these circumstances, bankruptcy is a natural consideration. Those thinking of filing bankruptcy, or even families facing mounting credit card…Read more
Exemptions: What Can I Keep if I File Bankruptcy?
Many people mistakenly believe that they will lose everything when they file for Chapter 7 bankruptcy. This is not the case. The Bankruptcy Code allows debtors to claim certain necessary property as off-limits from creditors and the trustee. That property is the debtor’s “exempt property.” The debtor claims property as exempt in the bankruptcy paperwork,…Read more
What is a Homestead Exemption? Can My Creditors Take My Home?
Last updated Oct. 30, 2017. Homestead exemption laws prevent the sale of a borrower’s home by their creditors in satisfaction of a debt. In many states, whether your home may be subject to forced sale is a function of how much home equity you have. A Homestead is Your Primary Residence A homestead is defined…Read more
What City and State Should I File for Bankruptcy In?
Last updated March 30, 2018. If you’re considering filing for bankruptcy, you might be confused on where you should file. Maybe you recently relocated to be closer to family or friends, were forced to move for a job or simply have ties to two locations. If you have connections to multiple places — or property…Read more
Chapter 7 Bankruptcy in Texas: What You Need to Know
The state of Texas takes pride in doing things differently than the rest of the country. However, when it comes to bankruptcy, Texans will find some similarity in the process regardless of which region they file in. The bankruptcy code is federal law, meaning it applies uniformly nationwide. For this reason, the experiences of debtors…Read more
Chapter 7 Bankruptcy in Ohio: What You Need to Know
Last updated June 28, 2017. Ohio, The Buckeye State, is home to America’s first professional baseball team (the Cincinnati Reds), the Rock & Roll Hall of Fame, the Pro Football Hall of Fame, and John Glenn, the oldest man to venture into outer space. It’s also ranked among the top 10 states in terms of bankruptcy filings….Read more